Part I Suppose a call option has an exereise price of s63, while a put option has an exercise price of $45. If the underlying stock is trading at 555 a. loth options are in the money b. Both opeions are out of the money e. The call is in the money, while the put is out of the money d. The c call is out of the money, while the put is in the money e None of the above Suppose you buy a call option and a put option. Which of the following is CORRECT? a. If both options are in the money, your net profitloss will be positive. C. If the call is in the money and the put is out of the money, your net profitness d. If the call is out of the money and the put is in the money, your net profivloss your net profit/loss will be positive. will be positive. will be positive. None of the above. e. iii. A put option's value increases as increases, the risk-free rate increases, and volatility of the to expiration decreases, the risk-free rate decreases, and volatility of the c. time to expiration increases, the risk-free rate increases, and volatility of the d. time to expiration decreases, the risk-free rate decreases, and volatility of the time to expiration a. underlying increases. underlying decreases underlying decreases. underlying increases. b. time e. None of the above. i. Suppose a stock is trading for $50 and a call option on the stock has an exercise price of $25. There is arbitrage if the call option is trading at... a. $40 b. $30. c. $20